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5d ago

Trump Administration Withholds $6.8 Billion in K-12 Education Grants Pending Review

States are mobilizing legal challenges under the Impoundment Control Act in response to the hold on more than 10 percent of annual K-12 federal funding

Students walk in front of Martin Luther King Middle School in San Francisco. “These funds... are especially critical in supporting our most vulnerable and at-risk students,” says SFUSD spokesperson Laura Dudnick.
McClymonds High School in West Oakland. For district officials trying to stay in the black this upcoming school year, the loss of an estimated $9.3 million in frozen federal funds was a gut punch.
Students play on the playground during recess at Hillcrest Elementary School in San Francisco. The city was expecting at least $7 million in federal funding this month that has been held back in Washington, D.C.
Office of Management and Budget director Russell Vought testifies during a Senate Appropriations Committee hearing on the rescissions package on Capitol Hill, Wednesday, June 25, 2025, in Washington. (AP Photo/Mariam Zuhaib)

Overview

  • The Department of Education paused Grant Award Notifications for five major programs—Title I-C, II-A, III-A, IV-A and IV-B—freezing between $6.2 billion and $6.8 billion in fiscal 2025 funds.
  • More than 33 states and territories face budget uncertainty for after-school enrichment, teacher training, migrant education and English-learner services.
  • Officials say the review is intended to ensure grants align with President Trump’s policy priorities and the administration’s proposed FY2026 budget cuts.
  • Under the Impoundment Control Act, funds can only be withheld if Congress rescinds them within 45 days, and state education chiefs and attorneys general are preparing lawsuits.
  • Districts warn the funding delay could force cancellation of summer programs and disrupt fiscal planning for the upcoming school year.